Tech stocks: rally before the end?

However, there are indications that this rally could soon reach its limits. On the one hand, it can already be seen that the central banks are slowly taking back the money supply and raising interest rates slightly – not least, there is increasing inflationary pressure. On the other hand, the developments outlined have led to a concentration in the markets that has reached a critical level. The ten largest companies now account for 18 percent of market capitalization. This means that the concentration in the global stock market is higher than it has been for decades. Many market observers agree that such distortions will be followed by a countermovement, a kind of normalization.

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